yield spread premium

You get what you pay for, or so the saying goes. But consumer advocates have long bemoaned that the opposite is true in the world of mortgages. Consumers choose between getting their loans through a mortgage broker, who can shop around with lots of lenders, or directly from the lenders themselves....

In attempt to put on a more consumer-friendly face, the Federal Reserve proposes a ban on side payments to mortgage brokers that encourage them to steer customers to higher-cost mortgage loans. Consumer groups have been fighting these payments, known as yield spread premiums, for years. It's...